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LEMPERT REPORT: Don't stop listening

Aug 1, 2008

-By Phil Lempert


These days, no one is questioning whether our economy is sagging. Increases in food prices across the board seem to be making headlines every day, with milk up 26 percent, ingredient prices of soybean oil up almost 80 percent, etc. And the corn-growing situation has already been fodder for dozens of books and blogs.

Most retailers are just hoping for a quick turnaround, and in the meantime seem to be relying on their private label lines and advertised specials to keep customers coming through the door. That kind of business is just the low-hanging fruit, however, and this is a strategy that's not sustainable.

What retailers and brands should be doing right now is working diligently to build the kinds of relationships with shoppers that supersede price. After all is said and done, shoppers realize that every retailer is selling their foods at similar prices. With the advent of $5-a-gallon gasoline or higher, it's unlikely that most shoppers will be driving around to multiple stores seeking out that lowest price.

So, if price alone isn't the way, how does one build this customer relationship that we all cherish?

I had the opportunity over the past couple of months to chat with two experts about the importance of excellent customer service in any climate: John Cleese (of Monty Python and Fawlty Towers fame, along with scores of films) and Bob Livingston (formerly of Unilever, now consultant to PG parent The Nielsen Company and others).

In June both Cleese and I had the honor of addressing the attendees at the IDDBA's annual convention in New Orleans. I must tell you the idea of immediately following John Cleese on stage had me concerned. After all, he's a brilliant writer, performer, and comedian, as well as a successful entrepreneur who's created a multimillion-dollar business teaching people about customer service -- he's literally a tough act to follow.

We spent about an hour together before his speech, and in that time I learned there was little doubt that one of his most important skills is understanding creativity as it relates to consumer behavior, especially at retail.

Achieving service excellence

During his presentation Cleese didn't disappoint. (I asked whether he would allow me to quote him, and being the English gentleman he is, he agreed, although only if I would, in exchange, suggest cheeses that he, being lactose-intolerant, could enjoy. I did.) By way of example, he shared with us his experiences upon arriving at a hotel room in Manhattan.

He was tired, and in desperate need of visiting what the British call the "loo." Finally the bellman showed up, carrying Cleese's suitcases. "He puts them down, and I tip him as I hop about, but then he starts explaining how the television works, so I tip him again, so now he starts explaining how the air conditioning works, and I lose it, I lose it! I start shouting 'Good-bye' to all four of them in every language I know" -- at this point, there were a housekeeper, minibar man, waiter, and bellman in the room all trying to attend to Cleese's needs -- "and, fortunately, they panic and scatter into the corridor.

"And then I remember the Golden Rule of Hotels: Your room is not your own until…you put up the 'Do Not Disturb' sign. So I hang it up -- 'No Molestar,' 'Ne Derangez Pas,' 'Nicht Stören,' 'Do Not Disturb' -- then sprint to the toilet and just make it. And there I am, luxuriating, the high point of the week. And there's a knock at the door. In midflow. And I'm angry. But…it could be important, so I try to stop and I waddle to the door and have a minor accident, so by the time I get there, I've decided to attack whoever's out there, if they don't have the perfect excuse for disturbing me. And I open the door, and there's a very polite young man there, and he points to the 'Do Not Disturb' sign and he says, 'I’m sorry, but is this supposed to be out here?'"

Cleese's lesson here is that to achieve excellent customer service, you must first listen to your customer. Sounds simple, but it's a skill that's hard to find in many organizations, including retailers.

Bob Livingston's new book, How You Do…What You Do, explains in detail his proven methods for creating and sustaining a culture of service excellence. It's a book about shifting your approach toward serving clients by focusing first on how you do what you do, through your motivation, your beliefs, and your behaviors and attitudes.

Livingston's hope is that we'll shift from a singular focus on the work we do to operate a retail store (what you do) to the broader focus of how we do it, thus performing the work on the customers' behalf. This is, as I would say, the foundation of building a relationship. He explains how this approach creates the differentiation that gives rise to customer loyalty, retention and, ultimately, competitive advantage.

Two men with a lifetime of experiences who share the same mantra -- perhaps it's time we follow their advice.


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